To market, to market—Episode 2: A glut in the market: How supply and demand affect prices

| January 29, 2018

Download this story

This week’s Farmer stories from Tanzania and Kenya highlight farmers who are trying to negotiate good market prices and good market arrangements by, respectively, selling to large buyers and selling on contract.

This week’s Script of the week is the second episode in a five-part series of scripts Farm Radio International distributed in 2003 about understanding and using market information. With accurate market information, farmers can decide which crops to grow, and where and when to sell in order to get the best prices.

This episode illustrates the laws of supply and demand. If there are large quantities of a certain product in the market—more supply than people can or will buy—then prices usually decrease. On the other hand, if demand is high or supply is low—if people want more of a product than is available—the price frequently goes up. Prices are often determined by how much of a product is on sale at any given time.

Of course, factors such as the weather and the changing climate have a big impact on the market. But understanding supply and demand can help farmers navigate their way toward better incomes and livelihoods.

Don’t forget to read through the other four scripts in this series! To find them, click on the links in the right margin of the following URL: